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26 February, 05:20

15. The journal entry to record the re-establishment of encumbrances that were outstanding at the close of the prior period would include: A) A credit to Budgetary Fund Balance - Reserve for Encumbrances B) A debit to Budgetary Fund Balance - Reserve for Encumbrances C) A credit to Encumbrance

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  1. 26 February, 05:22
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    B) A debit to Budgetary Fund Balance - Reserve for Encumbrances

    Explanation:

    Reserves for Ecumbrance is the fund which is kept aside for spending required by law or any legal contract. To re-establish the encumbrances a budget fund balance account will be debited to charge it to budget and reserve for Encumbrances ia credited because it is an obligation.
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